Kotak Infrastructure Investment Fund has received commitments of ₹5,328 crore from anchor investors including Canada Pension Plan Investment Board and the Asian Infrastructure Investment Bank.
The category II Alternate Investment Fund targets a ₹6,000-crore corpus and will invest in operating infrastructure projects by providing senior, secured credit.
This is the first time an infrastructure credit focused fund has been set up with significant commitments from international investors.
‘Better than equity’
Suman Saha, CEO, Kotak Infrastructure Fund, said the fund attempts to measure and price risk better than equity, and will deliver superior risk adjusted returns to its LPs. It will also provide credit solutions to stressed infrastructure assets and capital for growth, he said.
Srini Sriniwasan, Managing Director, Kotak Investment Advisors Ltd , said the fund will play a key role in solving the balance sheet correction issues in infrastructure assets at a time when other sources of capital have dried up.
Dongik Lee, Director General, Banking Department, AIIB, said India’s infrastructure sector has many assets with operating track records in need of innovative credit solutions. AIIB’s investment is expected to help improve the mobilisation of innovative risk capital from institutional investors, he added.